Gwede Mantashe and President Cyril Ramaphosa. (Gallo Images/Alet Pretorius)
Mineral Resources and Energy Minister Gwede Mantashe said he had told President Cyril Ramaphosa not to transfer all his powers to Electricity Minister Kgosientsho Ramokgopa.
“Now you leave me as a minister of petrol. How does it work? How can it work if I’m just a minister of petrol?” Mantashe said at the 133rd annual general meeting of the Minerals Council South Africa on Wednesday.
Ramaphosa last week Ramaphosa removed Mantashe of some of his powers under the Electricity Regulation Act in favour of Ramokgopa, saying this was meant to ensure effective coordination and to deal urgently with the country’s electricity crisis.
But energy analysts have said a close reading of section 34 of the Electricity Regulation Act made it clear that Ramokgopa has been allocated “nothing meaningful” in the division of powers between the energy and electricity portfolios.
On Wednesday, Mantashe said his department was working with its “sister” department of public enterprises to urgently resolve load-shedding and improve conditions in the mining sector.
According to data from Statistics South Africa, mining output has seen more than 12 consecutive months of year-on-year declines.
The Mail & Guardian has reported that the creation of a new electricity ministry had shocked the president’s allies, including Mantashe. The move was seen by Ramaphosa’s inner circles as an effort to contain his two most powerful cabinet ministers, Mantashe and Public Enterprises Minister Pravin Gordhan, who were battling for control over electricity.
At the Minerals Council AGM, Mzila Mthenjane, the head of stakeholder affairs at Exxaro Resources, was announced as the new chief executive, replacing Roger Baxter who has been in the position since May 2015. Mthenjane will join the Minerals Council in late August.
“We are pleased to appoint someone of Mzila’s experience and ability. He has, in his three decades of involvement in the mining and financial industries, garnered the experience the Minerals Council needs for its next chapter in a rapidly changing world,” council president Nolitha Fakude said in a statement.
The Minerals Council also released its integrated annual review for the year ended 31 December 2022, which showed that the sector’s direct contribution to GDP was R493.8 billion for the year, compared with R475 billion in 2021.
Employee earnings rose to R174.9 billion from R166.2 billion, while employment in the sector also increased to 475 561 people in 2022 from 458 954 the prior year.
“Looking back on 2022, it has been a tough year for everyone, not least the mining industry. However, we are determined to continue playing a meaningful role in the economy, society and communities in which member companies operate,” Fakude said.